Why Compliance Technology is Moving to the Cloud

We take a look at one of the key trends from the Four Compliance Trends for 2021 white paper.

2020 was one of the most challenging years in financial services history. Compliance teams were heavily affected and had to quickly adapt to ensure their firms remained compliant while offices laid empty and employees worked from home during COVID-19.

One distinct positive that can be gleaned from the experience is that long-dormant plans for enhancing compliance capabilities suddenly accelerated. Senior management teams were awakened by the threats posed by a distributed workforce and fast-tracked new technology, processes and policies to ensure their firms continued to operate within regulations. 

Below is one of the four key compliance trends that we predict will affect financial services in 2021 and beyond. For the full rundown of the major themes influencing the industry this year, download the Four Compliance Trends for 2021 white paper.

The Benefits of Moving Compliance Technology to the Cloud

Traditionally, firms would insist on any compliance technology being installed on-premise. This approach requires a lengthy initial implementation process, with ongoing investment in infrastructure and operational support alongside annual maintenance costs. In return, the firm has full control over the security of the solution. 

As we enter 2021, that trade-off is starting to make less sense. Security is a hugely important factor to consider, but cloud technology isn’t exactly a new thing. There are mature compliance solutions available with robust security controls that will satisfy even the most scrupulous of CIOs. 

Three factors are driving the move to cloud technology:

1. The rise of remote working
2. The need for greater agility
3. Cost savings

1. The Rise of Remote Working

Even if we see a return to the office in 2021, it’s almost certain that some form of flexible working is here to stay, even in the world of finance where being in the office was once thought of as imperative. Cloud-based solutions are much more appropriate for a distributed workforce due to the ease of access and the lack of internal maintenance. 

2. The Need for Greater Agility

The cloud also allows firms to operate with greater agility, scaling dependent on the needs of the business. Increasing storage, for example, can often be a logistical headache when collecting vast amounts of data. However, with a cloud-based solution, it’s the vendor who oversees any infrastructural changes and can provide additional resources efficiently.

3. Cost Savings

Finally, cloud-based solutions often provide greater value than their on-premise equivalents by removing or streamlining many of the infrastructural costs. Organizations can rely on the expertise of their vendor rather than burdening their technology team and incurring their own operational costs. With companies focused on tightening budgets like never before, 2021 is the time to undergo a digital transformation, taking advantage of the savings and improved performance offered by moving business systems to the cloud.

Discover the three other trends set to define compliance in 2021 by downloading our Four Compliance Trends For 2021 white paper.